Question 1 (1 point)
If P(A) = 0.3, P(B) = 0.2, P(A and B) = 0.0 , what can be
said about events A and B?
Question 1 options:
1) They are
2) They are
3) They are
4) None of
5) All of
Question 2 (1 point)
The number of cell phone minutes used by high school seniors
follows a normal distribution with a mean of 500 and a standard deviation of
50. What is the probability that a student uses more than 350 minutes?
Question 2 options:
5) None of
Question 3 (1 point)
Below is a payoff table giving profits for various
situations. What decision would an optimist make?
Question 3 options:
5) State of
Question 4 (1 point)
Demand for soccer balls at a new sporting goods store is
forecasted using the following regression equation: Y = 98 + 2.2X where X is
the number of months that the store has been in existence. Let April be
represented by X = 4. April is assumed to have a seasonality index of 1.15.
What is the forecast for soccer ball demand for the month of April (rounded to
the nearest integer)?
Question 4 options:
5) None of
Question 5 (1 point)
Andre Candess manages an office supply store. One product in
the store is computer paper. Andre knows that 10,000 boxes will be sold this
year at a constant rate throughout the year. There are 250 working days per
year and the lead-time is 3 days. The cost of placing an order is $30, while
the holding cost is $15 per box per year. How many units should Andre order
Question 5 options:
5) None of
Question 6 (1 point)
A widely used mathematical programming technique designed to
help managers and decision making relative to resource allocation is called
Question 6 options:
5) None of
Question 7 (1 point)
The first step in planning and scheduling a project is to
develop the __________.
Question 7 options:
calculations for each activity
Question 8 (1 point)
A suburban specialty restaurant has developed a single
drive-thru window. Customers order, pay, and pick up their food at the same
window. Arrivals follow a Poisson distribution while service times follow an
exponential distribution. If the average number of arrivals is 6 per hour and
the service rate is 2 every 15 minutes, how much time will elapse (in hours)
from the time a customer enters the line until he/she leaves the restaurant?
Question 8 options:
Question 9 (1 point)
Variations that usually occur in a process are called:
Question 9 options:
5) none of
Question 10 (1 point)
Refer to the Table below. Bags of chocolate candy are
sampled to ensure proper weight. The overall average for the samples is 36
ounces. Each sample contains twelve bags. The average range is 1.3 ounces. The
upper control chart limit for the sample averages would be:
Question 10 options:
Question 11 (1 point)
__________ involves sending an offer, announcement,
reminder, or other item to a person at a particular address.
Question 11 options:
Question 12 (1 point)
A university enrolled 200 graduate students in the Fall of
2011. However, the enrollment rate was only slightly affected following a 12
percent hike in tuition the following Fall. This illustrates a(n) ____________
Question 12 options:
Question 13 (1 point)
The latest trend in the United States involves rediscovering
the benefits of home-cooked food and the use of organic ingredients. People are
choosing to spend hours in the kitchen using only the freshest ingredients to
cook healthy and nutritious meals. This change in __________ is one of the
reasons for the increasing demand for organic ingredients.
Question 13 options:
Question 14 (1 point)
Dan has been directed to study the actors close to a company
that affect its ability to serve its customers such as the company, suppliers,
marketing intermediaries, customer markets, competitors, and publics. In this
instance, Dan has been directed to study the ____________ of the company.
Question 14 options:
Question 15 (1 point)
A firm that uses the selling concept takes a(n) __________
Question 15 options:
Question 16 (1 point)
Apart from retaining good customers, most marketers want to
constantly increase their “share of customer.” What does this mean in
Question 16 options:
want to increase their market share.
want to increase the share they get of the customers purchasing in their
want to diversify their operations and customize their products to cater to the
want to continuously increase their customers’ levels of satisfaction.
want to turn satisfied customers into delighted customers.
Question 17 (1 point)
Cats and Rats is a tablet game that allows players to be one
or the other and try to outsmart their opponents. In order to win, the players
need an occasional energy boost in the form of a nap, which is free, or the
player can pay for Cat Treats or Cheese Nibbles for their cat or rat. What form
of pricing is this?
Question 17 options:
Question 18 (1 point)
Which of the following is true of market-penetration
Question 18 options:
1) It should
be used when the product’s quality and image support a high price.
involves setting a high price for a new product to appeal to the elite in
results in drawing in large numbers of buyers quickly, winning a large market
4) It is
best used in conjunction with a market-skimming pricing strategy.
results in the company making fewer and less profitable sales.
Question 19 (1 point)
Which of the following marketing orientations calls for aggressive
promotional efforts and focuses on creating transactions rather than long-term
Question 19 options:
societal marketing concept
Question 20 (1 point)
____________ is determined by a customer’s evaluation of the
benefits and costs of a market offering relative to those of competing offers.
Question 20 options:
3) Share of
Question 21 (1 point)
Which of the following is a characteristic of a contribution
margin income statement?
Question 21 options:
and fixed expenses are combined into total expenses.
margin is identified as the difference between sales revenue and total
amount of gross margin is shown.
variable costs are less than sales revenue, there is a positive contribution
Question 22 (1 point)
Which of the following will result in an unfavorable direct
materials efficiency variance?
Question 22 options:
actual quantity of direct materials used per unit was less than the standard
quantity of direct materials allowed per unit.
actual cost per unit of direct materials exceeded the standard cost of direct
actual quantity of direct materials used per unit exceeded the standard
quantity of direct materials allowed per unit.
actual cost per unit of direct materials was less than the standard cost of
Question 23 (1 point)
Pennell Company gathered the following information for the
year ended December 31, 2009. During the year, Pennell produced and sold 75,000
units of product at a sale price of $6.50 per unit. What is the contribution
Question 23 options:
Question 24 (1 point)
Which of the following is a debt that is due to be paid with
cash, or with goods and services within the next year (or normal operating
cycle if longer)?
Question 24 options:
Question 25 (1 point)
How many members serve on the IASB?
Question 25 options:
Question 26 (1 point)
The starting point in the budgeting process is the:
Question 26 options:
of the sales budget.
of the cash budget.
of the budgeted income statement.
of the budgeted statement of cash flows.
Question 27 (1 point)
A two-year note payable would be classified as a:
Question 27 options:
Question 28 (1 point)
A company uses the indirect method to prepare the statement
of cash flows. It sold a piece of equipment at a loss of $3,600. The equipment
was purchased several years ago for $70,500 and had accumulated depreciation of
$52,900. What is reported under the operating activities section on the
statement of cash flows?
Question 28 options:
proceeds of $14,000 are subtracted from net income.
2) The loss
of $3,600 is added to net income.
3) The loss
of $3,600 is subtracted from net income.
proceeds of $14,000 are added to net income.
Question 29 (1 point)
Lowwater Sailmakers manufactures sails for sailboats. The
company has the capacity to produce 25,000 sails per year and is currently
producing and selling 20,000 sails per year. If a special sales order is
accepted for 5,000 sails at a price of $125 per unit, and fixed costs remain
unchanged, what is the change in operating income?
Question 29 options:
income increases $225,000.
income decreases $125,000.
income decreases $5,000.
income increases $190,000.
Question 30 (1 point)
A net loss would be closed as a:
Question 30 options:
1) credit to
2) debit to
3) debit to
4) credit to
Question 31 (1 point)
If a bond dealer sells a government bond to the Fed for
$100,000, and the reserve ratio is 10 percent, then the bank that receives a
$100,000 deposit from the dealer can expand its loans by __________, and the
money supply can increase by as much as __________.
Question 31 options:
Question 32 (1 point)
If the residents of a country specialize in a good in which
they have a comparative advantage and trade with residents in another nation,
the residents in the first country:
Question 32 options:
consume more than they could without trade.
produce more than they could without trade.
3) will have
a lower standard of living.
4) will be
exploited by the second nation.
Question 33 (1 point)
Using trade restrictions to protect special interests such
as the U.S. auto industry:
Question 33 options:
in lower prices for U.S. auto consumers.
the prices that U.S. consumers must pay for autos.
3) is a very
cost-efficient way of dealing with trade problems.
4) is the
best long-term solution for threatened U.S. jobs.
Question 34 (1 point)
If the price of cotton used in making blue jeans increases,
which of the following will occur?
Question 34 options:
will be a movement along an unchanged supply curve for jeans.
supply curve for jeans will shift rightward.
supply curve for jeans will shift leftward.
will be a rightward shift in the supply curve for jeans, followed by a movement
along the supply curve.
Question 35 (1 point)
The Consumer Price Index measures:
Question 35 options:
average of raw material prices paid by producing firms.
2) the level
of prices with respect to goods and services purchased by a typical consumer in
average of the prices of all goods produced in a country and goods imported
from other countries.
wage rates of manufacturing workers.
Question 36 (1 point)
Strategic behavior and game theory are features of which
Question 36 options:
Question 37 (1 point)
When one uses the expenditure approach to calculate Gross
Domestic Product (GDP), which of the following would be included?
Question 37 options:
spending at the local, state, and federal levels
purchases of services
4) All of
Question 38 (1 point)
A firm will not hire additional workers once:
Question 38 options:
1) it earns
additional cost of a worker equals the additional revenue from the worker.
product is rising.
company reaches its breakeven output level.
Question 39 (1 point)
A decrease in long-run average costs resulting from increases
in output is:
Question 39 options:
to economies of scale.
to diseconomies to scale.
to constant returns to scale.
to the law of diminishing marginal product.
Question 40 (1 point)
Suppose the economy currently is in a recessionary gap. The
Fed engages in expansionary monetary policy. The impact of expansionary
monetary policy will be to:
Question 40 options:
aggregate demand, increase prices, and increase real GDP.
aggregate demand, increase prices, and decrease real GDP.
short-run aggregate supply, decrease in prices, and decrease in real GDP.
short-run aggregate supply, decrease prices, and increase real GDP.
Question 41 (1 point)
Project A has an NPV of $500 and project B has an NPV of
$800. Management should:
Question 41 options:
both projects if they are mutually exclusive projects.
project A only if they are mutually exclusive projects.
both projects if they are independent projects.
project B only if they are independent projects..
Question 42 (1 point)
What is the term used to describe today’s currency exchange
Question 42 options:
3) The spot
Question 43 (1 point)
If the NPV of a project is positive, the IRR is __________
the cost of capital.
Question 43 options:
2) less than
3) equal to
Question 44 (1 point)
Which of the following is not a commonly used method to
expand a business internationally?
Question 44 options:
Question 45 (1 point)
If a firm’s degree of operating leverage (DOL) is 2, how
will a 6% increase in sales affect its earnings before interest and taxes
Question 45 options:
1) EBIT will
2) EBIT will
3) EBIT will
4) DOL does
not affect this relationship.
Question 46 (1 point)
If the exchange rate between the U.S. dollar and the Euro is
$1.40 per Euro, how many Euros will be needed to purchase a $10,000 asset?
Question 46 options:
Question 47 (1 point)
A firm has fixed costs of $10,000, variable costs of $5, and
a price per unit of $15. What is the firm’s breakeven sales level in units?
Question 47 options:
Question 48 (1 point)
In the U.S., who owns a corporation?
Question 48 options:
3) Board of
Question 49 (1 point)
A company has two bonds that are identical except one
matures in 5 years and one matures in 10 years. If interest rates fall, what
will happen to the price of the bonds?
Question 49 options:
1) Both will
decrease and the 10-year will decrease more.
2) Both will
decrease and the 5-year will decrease more.
3) Both will
increase and the 10-year will increase more.
4) Both will
increase and the 5-year will increase more.
Question 50 (1 point)
The future value of an investment earning interest will
__________ as the number of compounding periods increases.
Question 50 options:
Question 51 (1 point)
The period of irrevocability in a firm offer cannot exceed:
Question 51 options:
1) 1 month.
2) 3 months.
4) 6 months.
Question 52 (1 point)
A portable trailer is an example of:
Question 52 options:
4) none of
Question 53 (1 point)
As a director of a large corporation, Paul will most likely
Question 53 options:
1) is the
proposed action legal?
2) is the
proposed action profitable?
3) is the
proposed action ethical?
4) all of
Question 54 (1 point)
A binding promise to keep an offer open for a period of time
is called a(n):
Question 54 options:
Question 55 (1 point)
The failure to do what is called for by a contract is a:
Question 55 options:
Question 56 (1 point)
All goods not existing at the time of a transaction are
Question 56 options:
Question 57 (1 point)
If no termination date is specified for an offer, the offer
will remain open:
Question 57 options:
1) for one
2) for six
3) for a
someone accepts the offer.
Question 58 (1 point)
A counteroffer is a(n):
Question 58 options:
of the original offer:
of the original offer.
of the original offer and an invitation to negotiate further.
revocation of the original offer.
Question 59 (1 point)
Samantha agrees to sell Sally one lot next to her store. She
gives Sally a legal description of the lot. Sally gives Samantha an unsigned
copy of the contract terms. Samantha then sends a signed letter that mentions a
legal description. Sally sends back a final unsigned contract with her deposit
check attached to it.
Question 59 options:
handwritten legal description and unsigned draft contract satisfy the Statute
handwritten legal description, unsigned draft contract, the signed letter, and
the final unsigned contract with the deposit check have satisfied the Statute
3) They have
not satisfied the Statute of Frauds.
4) None of
Question 60 (1 point)
The basis for the law system in the U.S. today has its
Question 60 options:
Question 61 (1 point)
The __________ prohibits discrimination based on race,
color, religion, national origin, or sex.
Question 61 options:
2) Equal Pay
Rights Act, Title VII
Question 62 (1 point)
Fredrick Taylor is known as the father of:
Question 62 options:
Question 63 (1 point)
For managers, communication can’t be overemphasized, because
__________ requires communication.
Question 63 options:
a manager does
and monitoring employees
Question 64 (1 point)
All of the following are part of the process of
organizational design except __________.
Question 64 options:
goals for the organization
rules for employee behavior
how specialized jobs should be
the level at which decisions are made
Question 65 (1 point)
Informal planning is __________.
Question 65 options:
and usually lacks continuity
performed at the lowest organizational level
exclusively by middle managers
specific than formal planning
Question 66 (1 point)
Which organization would the transformational model probably
least likely be applied to?
Question 66 options:
1) A car
repair shop that also sells automotive parts
2) A major
chain sporting goods store
wholesale clothing retailer
4) A small
lawn care business
Question 67 (1 point)
Staff managers have authority over __________.
Question 67 options:
person above them in the chain of command
support employees only
Question 68 (1 point)
Which one of the four functions of management includes the
coordination of activities to meet organizational goals?
Question 68 options:
Question 69 (1 point)
Which step immediately follows the identification of a
problem in the decision-making process?
Question 69 options:
Question 70 (1 point)
What is the first step in the control process?
Question 70 options:
of a standard
of standard variations
Question 71 (1 point)
A __________ is a person or an organization that seeks to
obtain or alter data or other IS assets illegally without the owner’s
permission and often without the owner’s knowledge.
Question 71 options:
Question 72 (1 point)
The physical components of a computer are referred to as
Question 72 options:
Question 73 (1 point)
The suite of communications protocols used in the Internet
Question 73 options:
4) none of
Question 74 (1 point)
In a computer, components called __________ are used to
accomplish the input and output functions.
Question 74 options:
Question 75 (1 point)
Which of the following is an international standard language
for processing a database?
Question 75 options:
4) MS Access
Question 76 (1 point)
Brenda, the sales manager of a firm, wants to generate a
particular report containing sales analyses of the second and third quarter of
the year. She should use a __________ to obtain the information that she wants
from the database.
Question 76 options:
Question 77 (1 point)
Which of the following is the presentation format of an
Question 77 options:
Question 78 (1 point)
A wide-area network (WAN) is more than one __________
Question 78 options:
Question 79 (1 point)
Which of the following is not a component of a Central
Processing Unit (CPU)?
Question 79 options:
Question 80 (1 point)
Which of the following is the largest unit of measurement?
Question 80 options: